Tompkins Financial Corporation (TMP): Business Model Canvas [Dec-2025 Updated]

You're digging into Tompkins Financial Corporation's operating blueprint to see how this regional player actually makes money, and honestly, it's a classic community bank model layered with smart diversification. With $8.4 billion in total assets and a tight 1.84% cost of funds as of Q2 2025, their core strength is local lending across New York and Pennsylvania, but the real story is the integration: banking, insurance, and wealth management working together to generate $116.8 million in Net Interest Income year-to-date Q2 2025. We've mapped out their entire nine-block strategy, from their physical network of over 54 offices to their key partnerships funding growth; check out the full breakdown below to see the mechanics.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Key Partnerships

You're looking at how Tompkins Financial Corporation builds value through its external relationships, which is key for a regional bank like this. These partnerships aren't just nice-to-haves; they directly impact funding, community standing, and strategic positioning. Honestly, the data shows a clear focus on liquidity management and local engagement.

Local non-profit organizations for community impact and philanthropy

Tompkins Financial Corporation emphasizes community impact as a core value, which translates into tangible local support. Establishing and maintaining strong ties with local non-profit and philanthropic organizations is a key component to supporting the communities that support Tompkins Financial Corporation. This isn't just about goodwill; it builds local trust, which is vital for deposit gathering.

The scale of this commitment is measurable:

• Annual donations approximate $850,000 across its four markets.
• Employees dedicated approximately 19,000 hours of community service.
• In Central New York alone, Tompkins contributes to over 200 organizations annually.
• Through the EITC program, Tompkins donated over $3.7 million in total, with more than $332,000 going to 51 local programs recently.

Institutional investors and analysts like Piper Sandler for capital support

The relationship with the investment community, including analysts like Piper Sandler, guides capital strategy and market perception. Piper Sandler recently assumed coverage with a Neutral rating, which gives you a benchmark for valuation. They project 17% earnings per share growth for Tompkins Financial Corporation in 2026, though they see growth slowing to 8% in 2027. To be fair, their view suggests limited near-term upside, valuing the shares at 1.5 times tangible book value, or 1.2 times when adjusted for the recent insurance business sale.

A concrete sign of shareholder focus is the recent dividend action. The Board approved a dividend of $0.65 per share, which is a 4.6% increase, or $0.03 per share higher than the prior quarter. This payment was set for November 14, 2025, for shareholders of record as of November 7, 2025.

Federal Home Loan Banks (FHLB) for wholesale funding access

Access to wholesale funding, particularly from the Federal Home Loan Banks (FHLB), is critical for maintaining liquidity as the loan portfolio grows. Tompkins Financial Corporation maintains ready access to liquidity, which stood at $1.5 billion, or 18.0% of total assets, at June 30, 2025. This access is supported by FHLB advances, among other sources.

Here's a look at the FHLB relationship metrics:

The required investment in FHLB stock is directly tied to the Company's borrowing levels with the FHLB. This is a direct, balance-sheet-impacting partnership.

Technology vendors for digital banking and core systems

While specific vendor names aren't public in the latest filings, the operational cost structure reflects technology management. Other operating expenses, which include technology costs, were down by $1.1 million for the fourth quarter of 2024 compared to the same period in the prior year. Tompkins Financial Corporation offers mobile and internet banking services, meaning these vendor relationships are essential for maintaining the digital front door for its customers across its 63 banking offices in New York and Pennsylvania.

The partnership structure for technology is about maintaining efficiency; the expense reduction shows active management of these vendor contracts.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Key Activities

You're mapping out the core engine of Tompkins Financial Corporation as of late 2025. The activities here are what drive the balance sheet and the noninterest income stream. It's a mix of traditional banking and specialized services.

Core commercial and consumer lending operations

The primary activity centers on growing the loan book across commercial and consumer segments. At the close of the second quarter of 2025, total loans stood at $6.17 billion in Net Loans and Leases.

This book saw definite movement during the first half of the year. Total loans increased by $106.0 million, or 1.8%, from the end of the first quarter of 2025. On an annualized basis, that growth rate was 7.0% for the quarter. Compared to the same time last year, total loans were up $410.8 million, which is a 7.1% increase year-over-year. The year-to-date average loan growth was reported at 7.5%.

The deployment of those assets is managed against funding sources. Here's a quick look at the balance between lending and deposits as of June 30, 2025:

Deposit gathering and liability management

Gathering low-cost deposits is crucial for funding those loans and managing the cost of funds. Total deposits at June 30, 2025, were reported at $6.7 billion, showing a year-over-year increase of $429.9 million, or 6.8%. The year-to-date average deposit growth was 5.2%.

Liability management is clearly a focus area, given the reported cost structure. For the second quarter of 2025, the total average cost of funds was 1.84%, which was flat compared to the prior quarter. Also, the average cost of interest-bearing liabilities for Q2 2025 was 2.44%, unchanged from the immediate prior quarter. That 1.84% cost of funds is down 12 basis points compared to the second quarter of 2024.

Providing integrated wealth management and trust services

Fee-based activities provide important diversification. Tompkins Financial Advisors handles the wealth management and trust services. Total fee-based services revenues, which include wealth management, were up 2.8% year-over-year in Q2 2025, amounting to an increase of $533,000 over the second quarter of 2024.

Drilling down into the wealth management component for the first six months of 2025, the fees showed growth:

• Wealth management fees increased by $115,000 or 2.4% in Q2 2025 compared to Q2 2024.
• Year-to-date wealth management fees were up $297,000, or 3.0%, compared to the same period in 2024.

Selling property/casualty and employee benefit insurance

The insurance agency, Tompkins Insurance Agencies, Inc., is another key source of noninterest income. This activity involves property and casualty insurance services and employee benefit consulting. In Q2 2025, insurance commissions and fees specifically increased by $522,000, or 5.7%, compared to the second quarter of 2024. This growth helped offset softness in other fee lines, like card services income, which was down $128,000 or 3.9% year-over-year for the quarter.

Strategic growth through potential acquisitions of financial institutions

While the focus is often on organic growth, a major strategic activity in late 2025 involved a significant divestiture. Tompkins Financial Corporation announced and closed the sale of Tompkins Insurance Agencies, Inc. to Arthur J. Gallagher & Co. The reported transaction value for this sale was $183 million. This move shifts the focus of fee-based revenue generation more heavily toward the remaining wealth management and deposit service charges. The company also authorized a new Stock Repurchase Program allowing the repurchase of up to 400,000 shares over the next 24 months, announced on July 25, 2025. Finance: draft 13-week cash view by Friday.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Key Resources

You're analyzing the core assets Tompkins Financial Corporation uses to deliver value, which is the bedrock of their business model. These aren't just line items; they are the engines that drive their regional banking, insurance, and wealth management services.

The financial foundation is substantial, giving them the capacity to lend and invest. As of the latest available data for the third quarter of 2025, Tompkins Financial Corporation is a financial services holding company with total assets reaching approximately $8.46 Billion USD.

Their physical footprint is concentrated and serves their defined geographic market. Tompkins Financial Corporation operates over 54 banking offices, strategically positioned across New York and Pennsylvania. This physical network is crucial for local customer interaction and deposit gathering.

The company relies on strong, recognized brands to segment and deliver its value propositions. These intellectual properties represent established trust and service lines:

• Tompkins Community Bank for core banking services.
• Tompkins Financial Advisors for wealth management.
• Tompkins Insurance Agencies, Inc. for insurance offerings.

Regulatory strength is a key resource, signaling stability to depositors and counterparties. The Tier 1 capital ratio to average assets stood at 9.36% as of the second quarter of 2025 (June 30, 2025). This ratio is a direct measure of the company's ability to absorb unexpected losses.

A significant structural resource is their decentralized operational model. This is embodied by local decision-making authority across its regional affiliates, which allows for quicker, more tailored responses to community-specific economic conditions and customer needs, differentiating them from larger, more centralized institutions.

Here's a quick look at the key quantitative resources as of late 2025:

The operational structure supports this resource base through specific capabilities:

• Focus on attracting local deposits to fund local loan origination.
• Ability to originate commercial, agricultural, consumer, and real estate loans.
• Maintaining ready access to liquidity, reported at $1.5 billion in Q3 2025, representing 17.8% of total assets.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Tompkins Financial Corporation over the competition in late 2025. It's about integration, local presence, and a very long track record.

Full-service financial integration: banking, insurance, and wealth management.

Tompkins Financial Corporation delivers a complete suite of services through its subsidiaries, Tompkins Community Bank, Tompkins Insurance Agencies, Inc., and Tompkins Financial Advisors. This means you can handle commercial and consumer banking, leasing, trust and investment management, financial planning, and insurance all under one umbrella. The scale of the operation as of late 2025 supports this integration.

The retail deposit base, which is the core of community banking, remains significant.

• 78% of total deposits are retail deposits (consumer and small businesses) as of June 30, 2025.

Community-focused banking with local decision-making.

The structure emphasizes local control, which is a key differentiator. Tompkins Community Bank operates through 54 banking offices, with 38 offices in New York and 16 offices in Pennsylvania, serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Each affiliate operates under its own local decision makers.

Financial stability and trust built over 188 years.

The company traces its roots to the chartering of the Tompkins County Bank in 1836. This history is marketed as providing over 188 years of trust. The financial strength underpinning this trust is reflected in capital and liquidity positions.

The commitment to long-term value creation is a stated goal.

Specialized lending products like the No Closing Cost Mortgage.

While specific data on the No Closing Cost Mortgage isn't public, the value proposition is tied to offering a variety of commercial loans, agricultural loans, consumer loans, and real estate loans, originating from deposits gathered in the local areas. The loan portfolio growth reflects this activity.

• Total Loans at September 30, 2025, were up 6.9% from September 30, 2024.
• Diluted Earnings Per Share for Q3 2025 was $1.65, up 26.9% from Q3 2024.

Personalized, long-term advisor relationships for complex needs.

Tompkins Financial Advisors provides investment management, trust and estate, and financial and tax planning services. The value proposition here is collaboration with clients as a trusted advisor to help them build, protect, and preserve wealth. The year-to-date noninterest income from wealth management fees contributes to this service line's value.

Year-to-date noninterest income for the first nine months of 2025 was $71.1 million, showing growth driven in part by wealth management fees.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Customer Relationships

You're looking at how Tompkins Financial Corporation (TMP) keeps its customers close, which is key since they are a community-based organization focused on personalized service. As a $8.4 billion in assets financial services holding company trading on NYSE MKT LLC under the 'TMP' symbol, the scale of these relationships matters a lot.

Dedicated, personal relationship managers in local markets.

Tompkins Community Bank operates over 54 banking offices serving New York and Pennsylvania. Management believes this community-based structure is better for establishing personalized financial relationships with both commercial customers and individual households. The structure ensures that each affiliate operates under the direction of its own local decision makers, concentrating on the unique needs of the communities served.

High-touch, advisory service for wealth management clients.

The wealth management segment, operating under the Tompkins Financial Advisors brand, collaborates with clients as a trusted advisor. This high-touch approach involves a team-based strategy where investment strategies are tested and strengthened by a larger network of experts, guided by an in-house investment committee. The focus on advisory services is reflected in the financial results; wealth management fees revenue for the fourth quarter of 2024 was up 10.3% compared to the fourth quarter of 2023.

Community engagement and financial education programs.

The commitment to community is operationalized by reinvesting deposits as loans to local families and businesses, and by supporting local organizations. The total deposit base at March 31, 2025, stood at $6.8 billion, representing the core community funds managed. The CEO stated a commitment to supporting local communities while driving growth through building quality customer relationships in the first quarter of 2025 earnings release.

Automated self-service for basic transactions (digital/ATM).

Tompkins Financial Corporation offers products and services accessible through digital means, focusing on providing unparalleled customer service across channels. While specific digital adoption rates for Tompkins Financial Corporation aren't public, the existence of digital access is a core part of the service suite. The company maintains ready access to liquidity of $1.3 billion, or 16.4% of total assets at December 31, 2024, which speaks to the underlying operational strength supporting all transaction types.

Fostering loyalty through integrated service offerings.

Loyalty is fostered by integrating banking, insurance, and wealth management services. This integration drives cross-segment revenue growth. Total fee-based services revenues (insurance, wealth management, service charges on deposit accounts and cards) for the fourth quarter of 2024 were up $1.3 million or 7.7% compared to the fourth quarter of 2023. You see this integration across the affiliates:

• Tompkins Community Bank
• Tompkins Insurance Agencies, Inc.
• Tompkins Financial Advisors

The overall loan portfolio, a direct measure of commercial and consumer relationships, grew 7.4% year-over-year as of December 31, 2024.

Here's a look at the scale of the customer base metrics as of early 2025:

The loan to deposit ratio at March 31, 2025, was 89.8%, showing a solid balance between customer funding and lending activity.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Channels

You're looking at how Tompkins Financial Corporation gets its products and services-banking, wealth management, and insurance (pre-sale)-to its customers as of late 2025. The distribution strategy relies on a mix of physical presence and digital access, supplemented by specialized advisory teams.

The physical branch network, operated by Tompkins Community Bank, remains a core channel. As of the latest available data, Tompkins Financial Corporation operates a network of 63 banking offices across its service areas. This physical footprint is concentrated in two states.

Here is a breakdown of the physical distribution points:

• Total banking offices: 63
• Offices in New York: 43
• Offices in Pennsylvania: 20

Digital platforms provide the necessary 24/7 reach that complements the physical locations. These include mobile and internet banking services, which support core banking functions. For context on the scale of the underlying banking business utilizing these channels, total deposits at June 30, 2025, stood at $6.7 billion.

Specialized services flow through dedicated affiliates. Tompkins Financial Advisors is the primary channel for wealth management, investment management, trust and estate, and financial planning services. The growth in this area is reflected in the fee-based services revenue, which saw a year-to-date increase of 4.5% as of June 30, 2025.

It is important to note a significant channel change: Tompkins Financial Corporation announced the closing of the sale of its wholly owned subsidiary, Tompkins Insurance Agencies, Inc. (TIA), to Arthur J. Gallagher & Co. in November 2025. This transaction generated a pre-tax gain of $183 million, meaning the insurance agency channel is now under a different ownership structure.

For immediate transactional needs, access is provided through ATMs and voice response systems, ensuring round-the-clock service availability. Direct sales teams are deployed specifically to engage commercial and high net worth clients, offering tailored solutions outside of the standard branch or digital interface.

Here's a quick look at the structure and associated scale for the primary service delivery points:

The direct sales teams focus on deepening relationships for complex needs, which is where the specialized knowledge of Tompkins Financial Advisors comes into play. Finance: draft 13-week cash view by Friday.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Customer Segments

Tompkins Financial Corporation serves a broad spectrum of clients across its community-based financial services organization.

Individuals and consumers, including high net worth clients.

This segment utilizes consumer banking products, including deposit accounts and mortgage services. The overall customer base includes individuals and families seeking personal banking solutions. The company's wealth management and trust services cater to clients with more complex financial planning needs, evidenced by year-to-date noninterest income from wealth management fees growing as part of a broader 5.7% increase in noninterest income for the first nine months of 2025.

• Serves individual consumers for deposit accounts and consumer loans.
• Includes high net worth clients utilizing trust and investment management.
• Total deposits stood at $7.1 billion as of September 30, 2025.

Small to mid-sized businesses and commercial clients.

Tompkins Financial Corporation targets small to medium-sized enterprises (SMEs) and larger commercial entities with commercial banking, leasing, and insurance solutions. Loan growth in the first nine months of 2025 was strong, with total loans increasing by $406.8 million, or 6.9%, from September 30, 2024, to September 30, 2025. The primary drivers for this loan growth were concentrated in specific commercial areas.

Here's the quick math on where the commercial lending focus was:

Corporate executives and institutional customers.

This segment is addressed through specialized services like trust and investment management, financial planning, and insurance. The company's overall asset base, which was approximately $8.4 billion in assets as of late 2025, provides the foundation for these institutional-level services.

• Receives services through Tompkins Financial Advisors brand.
• Involved in fee-based revenue streams like insurance commissions.

Local communities in Upstate New York and Pennsylvania.

The company maintains a locally-oriented, community-based approach, operating through a physical network concentrated in these two states. This physical presence is key to relationship building.

Homeowners and first-time buyers (mortgage focus).

Consumer banking activities include residential mortgage loans. The company supports local families with consumer loans, which contributed to the overall average loan growth of 7.1% year-over-year as of June 30, 2025. The focus is on providing a full array of products to local residents.

• Offers residential mortgage loans as part of consumer banking.
• Contributes to overall average loan growth figures.

Finance: draft 13-week cash view by Friday.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Cost Structure

The Cost Structure for Tompkins Financial Corporation is heavily influenced by funding costs and personnel expenses, which are the primary drivers of overall operating costs.

Noninterest expense for Tompkins Financial Corporation totaled $102.2 million Year-to-Date (YTD) for the period ending June 30, 2025, representing an increase of $2.4 million or 2.4% compared to the $99.8 million reported for the same period in 2024.

Interest expense on deposits and borrowed funds represents a significant component of total costs. For the year ended December 31, 2024, the Total Interest Expense was $136,472 thousand. As of the second quarter of 2025, the total average cost of funds was 1.84%, down 12 basis points compared to the same period in the prior year. The average cost of interest-bearing liabilities for the second quarter of 2025 was 2.44%.

Salaries and employee benefits are a major noninterest expense driver. For the first quarter of 2025, salaries and wages and other employee benefits were up $969,000 or 3.1% year-over-year. Looking at the full year 2024 figures, the components were:

The Provision for credit losses (PCL) for the second quarter of 2025 was $2.8 million. This compares to $5.3 million in the first quarter of 2025 and $2.2 million in the second quarter of 2024.

Costs related to technology and marketing costs for digital and branch operations are embedded within other operating expenses. For the fourth quarter of 2024, a year-over-year decrease in other operating expenses included specific reductions in technology and marketing:

• Technology expense was down $1.3 million year-over-year in Q4 2024.
• Marketing expense was down $1.2 million year-over-year in Q4 2024.

Other key noninterest expense details from the year ended December 31, 2024, include:

• Net occupancy expense of premises: $12,634 thousand YTD.
• Furniture and fixture expense: $7,666 thousand YTD.
• Other operating expense: $51,199 thousand YTD.

The total noninterest expenses for the year ended December 31, 2024, were $199,642 thousand.

Tompkins Financial Corporation (TMP) - Canvas Business Model: Revenue Streams

You're looking at how Tompkins Financial Corporation brings in its money as of late 2025. The core of their revenue, like most banks, is split between what they earn on their assets and what they pull in from fees for services. It's all about the spread and the service charges.

Net Interest Income (NII) remains the biggest earner. For the first six months of 2025 (YTD Q2 2025), Tompkins Financial booked $116.8 million in Net Interest Income. This was a solid increase, showing that their balance sheet repricing dynamics are working, with the Net Interest Margin improving to 3.08% in the second quarter of 2025. That NII growth is crucial, especially since the company recently sold its insurance brokerage business, making the interest-earning side even more central to overall revenue.

The second major bucket is Noninterest Income, or fee-based services. For the second quarter of 2025, this totaled $22.5 million. This income stream is diversified across several areas, though some parts grew faster than others during that quarter.

Here's a look at the key components driving the fee-based revenue, using the most detailed component figures available from the first quarter of 2025 for absolute dollar context, while keeping in mind the Q2 2025 total revenue figure:

You need to watch the year-over-year trends for the fee components from Q2 2025:

• Insurance commissions and fees were up 5.7% year-over-year for Q2 2025, contributing significantly to the overall Noninterest Income growth.
• Wealth management and trust fees saw a more modest increase, rising 2.4% year-over-year in Q2 2025.
• Service charges on deposit accounts and card services definitely contribute, although card services income specifically was down 3.9% in Q2 2025 compared to the prior year.

The growth in fee-based services revenue year-to-date for the first six months of 2025 was reported at 4.5% overall, showing positive momentum across the service lines, even with the dip in card services income for the quarter.